Risk on and weak USD are fuelling renewed EUR/USD gains toward mid 1.18s, but price action still leans toward further range trading and isn't yet consistent with a renewed assault on 1.2000 barriers nL1N2FF0BO.
One-month implied volatility sold hard from last week's 8.6 peak to 7.0, and one-month risk reversals went from 0.85 to 0.5 EUR calls over puts.
Both are now meeting demand as EUR/USD rises, but in no rush to test last week's highs.
USD/JPY caught in this weak USD, risk on crossfire, limiting volatility and potential for a sustained directional move.
That doesn't favour options, which are now extending their setbacks from last week's peaks nL1N2FF0DL.
GBP/USD gains at the mercy of USD weakness, but trades still show concern for an eventual return to December highs at 1.3500 (1.3210 March highs/barriers immediate threat).
One-month implied volatility meets demand around 8.0 from 9.3 last week.
AUD/USD one-month setback lows at 9.75 as longs reduce exposure, confirming near-term AUD/USD outlook as key support/resistance holds nL1N2FF09G.
USD/TRY topside fears simmer nL1N2FF0KE
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